Desjardins multifactor ETFs: Smartly designed ETFs

Thanks to our multifactor exchange-traded funds (ETFs), your clients can build a portfolio that aims to achieve a better risk/reward ratio compared to their respective indices.

The Desjardins multifactor ETF approach

We’ve teamed up with Scientific Beta. By combining our expertise with our partner’s approach, we’re able to build portfolios that are weighted by risk factor and market capitalization.

Researchers have tested the six factors below, which are recognized as factors that have generated a strong market risk-adjusted return in the long term1.

  • Low risk
  • Size
  • Value
  • Momentum
  • Profitability
  • Investment

Our multifactors ETFs have three investment objectives:

  • Improved diversification
  • Better risk/reward ratio
  • Improved volatility control

Our multifactor controlled volatility ETFs

Aims for volatility that is lower than the benchmark.

Desjardins Multifactor – Controlled Volatility ETF MER
Ticker DFC Desjardins Canada Multifactor – Controlled Volatility ETF 0.59%
Ticker DFU Desjardins USA Multifactor – Controlled Volatility ETF 0.59%
Ticker DFD Desjardins Developed ex USA ex Canada Multifactor – Controlled Volatility ETF 0.71%
Ticker DFE Desjardins Emerging Market Multifactor – Controlled Volatility ETF 0.77%

Our multifactor responsible investment ETFs

Aims for higher growth potential and supports the transition towards a greener economy.

Desjardins Multifactor – Responsible Investment ETF Mgmt. Fee2
Ticker DRFC Desjardins Canada Multifactor – Low CO2 ETF 0.50%
Ticker DRFU Desjardins USA Multifactor – Low CO2 ETF 0.50%
Ticker DRFD Desjardins Developed ex-USA ex-Canada Multifactor – Low CO2 ETF 0.60%
Ticker DRFE Desjardins Emerging Markets Multifactor – Low CO2 ETF 0.65%
Ticker DRFG Desjardins Global Multifactor – Fossil Fuel Reserves Free ETF 0.60%

Mitigated volatility

On their own, each of the factors generates value at some point, but their performance is very volatile. Multifactor allocation smooths returns over different cycles. This strategy aims to provide a higher return for a given level of risk.

Annual return spread of long-short CW factors 1 3

Graphique

Our team

Desjardins Global Asset Management (DGAM) is one of the largest portfolio managers in Canada.

  • +$63B in assets under management4
  • +42 investment professionals
  • +18 ETFs

Our partner: Scientific Beta

DGAM has chosen ERI Scientific Beta because of its objectivity and proven academic rigour. Its Smart Beta indices are used by more than 2,500 asset managers.

  • ScientificBeta
  • Risk Awards

Want to speak to a regional sales director about our investment solutions?

See the full list of regional sales directors

(For advisor use only)

  1. December 2018. Findings from U.S. market data. Similar results were observed in other global markets.
    Source: A Guide to Scientific Beta Multi-Smart Factor Indices - External link. This link will open in a new window..
  2. The ETF’s annual management fee of the ETF’s value. Management Expense Ratio (MER) is not available as these ETFs have not yet completed 12 consecutive months.
  3. Factors are obtained from the EDHEC Risk US Long-Term Track Records. The analysis is based on daily total returns in USD from December 31, 1977 to December 31, 2017 (40 years). Size/Value/Momentum factors are long short cap-weighted portfolios long in small cap stocks (in broad market) /30% highest book-to-market/30% past 12M-1M high returns stocks and short in 30% largest cap stocks/30% lowest book-to-market/30% past 12M-1M low returns stocks. Low Risk/ Profitability/ Investment factors are long short cap-weighted portfolios long in 30% lowest past 2Y volatility/30% highest gross profit-to-total asset ratio/30% lowest 2Y total asset growth rate stocks and short in 30% highest past 2Y volatility/30% lowest gross profit-to-total asset ratio/30% highest 2Y total asset growth rate stocks. Average across the six factors are the mean annual returns for each year.
  4. As at December 31, 2018.
  5. General and specific information

    Desjardins ETFs

    Desjardins exchange-traded funds are not guaranteed, their value fluctuates frequently, and their past performance is not indicative of their future returns. Commissions, management fees and expenses may all be associated with an investment in exchange-traded funds. Please read the prospectus before investing. Desjardins Global Asset Management Inc. is the manager and portfolio manager of the Desjardins exchange-traded funds. Desjardins exchange-traded funds are offered by registered dealers.

    EDHEC Risk Institute Asia Ltd.

    The Scientific Beta Multifactor – Controlled Volatility Indices referenced herein are the property of EDHEC Risk Institute Asia Ltd. (“ERIA”) and have been licensed for use in connection with the Desjardins Multifactor – Controlled Volatility ETFs within the framework of ERI Scientific Beta activity. Each party acknowledges and agrees that each Desjardins Multifactor – Controlled Volatility ETF is not sponsored, endorsed or promoted by ERIA. ERIA makes no representation whatsoever, whether express or implied, and hereby expressly disclaims all warranties (including, without limitation, those of merchantability or fitness for a particular purpose or use), with respect to the Scientific Beta Multifactor – Controlled Volatility Indices or any data included therein or relating thereto, and in particular disclaims any warranty either as to the quality, accuracy and/or completeness of the Scientific Beta Multifactor – Controlled Volatility Indices or any data included therein, the results obtained from the use of the Scientific Beta Multifactor – Controlled Volatility Indices and/or the composition of the Scientific Beta Multifactor – Controlled Volatility Indices at any particular time on any particular date or otherwise and/or the creditworthiness of any entity, or the likelihood of the occurrence of a credit event or similar event (however defined) with respect to an obligation, in the Index at any particular time on any particular data or otherwise. ERIA shall not be liable (whether in negligence or otherwise) to the parties or any other person for any error in the Scientific Beta Multifactor – Controlled Volatility Indices, and ERIA is under no obligation to advise the parties or any person of any error therein.

    ERIA makes no representation whatsoever, whether express or implied, as to the advisability of purchasing or selling the Desjardins Multifactor – Controlled Volatility ETFs, the ability of the Scientific Beta Multifactor – Controlled Volatility Indices to track the performance of relevant markets, or otherwise relating to the applicable Scientific Beta Multifactor – Controlled Volatility Index or any transaction or product with respect thereto, or of assuming any risks in connection therewith. ERIA has no obligation to take the needs of any party into consideration in determining, composing or calculating the Scientific Beta Multifactor – Controlled Volatility Indices. No party purchasing or selling the Desjardins Multifactor – Controlled Volatility ETFs, nor ERIA, shall have any liability to any party for any act or failure to act by ERIA in connection with the determination, adjustment, calculation or maintenance of the Scientific Beta Multifactor – Controlled Volatility Indices.

    For advisors only

    This confidential information is intended only for representatives who are registered with a securities regulatory authority. At no time should this information be shared with investors or included in promotional materials.